The ONS report indicated that the services sector also contributed to the growth, with activities related to accounting and tax consultancy experiencing a notable increase, coinciding with the lead-up to the Budget on November 26. The unexpected growth has led some economists to believe that the UK economy likely experienced modest growth in the final quarter of 2025.
Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, described the November figures as "unexpectedly upbeat," suggesting that most sectors had "seemingly shrugged off pre-Budget uncertainty." He added that the easing of uncertainty following the Budget likely supported growth in December, despite disruptions caused by the 'super flu' in sectors such as education.
While economists welcomed the better-than-expected figures, many cautioned that growth is expected to remain moderate in the near term. The rebound in car production at Jaguar Land Rover, a significant player in the UK automotive industry, provided a crucial boost to industrial output. The company's return to normal operations after the cyber-attack contributed significantly to the overall economic performance in November.
The 0.3% growth in November offers a positive sign for the UK economy, which has faced challenges in recent months. However, economists remain cautiously optimistic, emphasizing the need for sustained growth across various sectors to ensure a robust economic recovery. Further data releases in the coming months will provide a clearer picture of the UK's economic trajectory.
Discussion
Join the conversation
Be the first to comment